Delta Infra Pvt. Ltd. was granted a letter of approval (LOA) by the Board of Approval (BOA) to develop a multi-product Special Economic Zone (SEZ) in Gujarat. Two years into the development, multiple complaints surfaced

Section 10 of the Special Economic Zones Act, 2005 provides that the suspension may be ordered by the Board of Approval, if in its opinion following circumstances exist: The developer is unable to discharge the functions for perform the duties imposed on him. The developer has persistently defaulted in complying with the directions of the Board. The financial position of the developer is such that he is unable fully and efficiently discharge the duties and obligations imposed on him by the letter of approval. The section empowers the Board to suspend the letter of approval granted to the Developer for a whole or part of his area established as Special Economic Zone for a period not exceeding one year and appoint an Administrator to discharge the functions of the developer in accordance with the terms and conditions of the letter of approval and manage the Special Economic Zone accordingly. However, no letter of approval can be suspended unless the Board has given to the Developer not less than three months' notice, in writing, stating the grounds on which it proposes to suspend the letter of approval, and has considered any cause shown by the Developer within the period of that notice, against the proposed suspension. It has been further provided that the Board may, instead of suspending the letter of approval permit it to remain in force subject to such further terms and conditions as it thinks fit to impose. Section 10(4) makes any further terms or conditions so imposed binding upon the Developer. These terms and conditions have the force and effect as if they were contained in the letter of approval. In case the Board suspends a letter of approval, it has been put under obligation to serve a notice of suspension upon the Developer and fix a date for suspension to take effect. Upon suspension of the letter of approval, the Special Economic Zone of the Developer vests in the Administrator for a period not exceeding one year or up to the date on which the letter of approval for such Special Economic Zone is transferred, whichever is earlier. This Section also contains provisions for transfer of the Special Economic Zone of a Developer whose licence has been suspended and take other actions consequent upon the suspension of the letter of approval. The Board of Approval has been empowered to issue such directions or formulate such scheme as it may consider necessary for operation of such Special Economic Zone.